Agency & LawQuestion 34 of 120
The duty of 'accounting' in an agency relationship requires the agent to:
a.Prepare the client's income tax returns
b.Properly handle and report on money and property entrusted to them, such as earnest money
c.Personally guarantee the loan
d.Set the listing price
Explanation
Accounting means the agent must safeguard and accurately report all funds and documents belonging to the client or third parties, such as earnest money. Commingling client funds with the broker's own operating account is prohibited.
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